In a growing Bennington neighborhood, Adam Gibson has lived with his spouse and mother-in-law for nearly seven years. “My mother-in-law put the money down on the house, and then we found one within the budget,” Gibson said. Then, Gibson got their updated property valuation for 2021. “We thought, we’re not going to be able to afford this,” Gibson said. Gibson’s valuation jumped by $101,300 this year, a 38% increase over 2020.Under the current levy rate, that would be almost $300 more every month in property taxes. “This was going to be our forever home, and now that’s up in the air,” Gibson said. It’s a refrain KETV Newswatch 7 has heard from property owners time and time again this year, as new valuations get sent out. As part of a series on property valuations in Douglas and Sarpy counties, we’ve reported that state law requires properties be valued at market rates — essentially, what they could sell for. As sale prices increase in the hot housing market, so too are valuations. Jim Vokal, CEO of the Platte Institute said those escalating valuations mean taxing entities stand to bring in more money, without raising tax rates. “The valuations have increased substantially. But what hasn’t happened, are the counties, the cities, the school districts, other political subdivisions actually lowering the rates to offset the valuation increases. Because what’s happening is they’re getting a windfall beyond budget expectations, and they’re spending it,” Vokal said. According to the Douglas County Assessor, initial projections show a $3 billion jump in the county’s total valuation, or a 6% increase over last year. In Sarpy County, the assessor said projections show a $1.2 billion jump in total valuation, or a 7% increase. Both counties, outpacing the rate of inflation. KETV Newswatch 7 reached out to cities and school districts to see if they had plans to reduce their levies based on those increased valuations. Most said they were still assessing budgets. According to the Tax Foundation, Nebraska has the 8th highest property tax rate in the country. The Platte Institute said property taxes just don’t need to be such a large part of the revenue pie in the Cornhusker State. “If you look across the country, in the states that are fundamentally doing tax modernization and doing the tax reform that we should be doing it Nebraska, they’re doing it through the elimination of these carve-outs, the elimination of sales tax exemptions,” Vokal said. Another local group, Open Sky Policy Institute, also supports broadening the sales tax base. While the organization does not support taxing items like groceries, it does say there are nearly 100 services taxed in other parts of the country that are not taxed here in Nebraska. This type of reform is something state Senator Tom Briese has been pushing for in the legislature.The Albion senator said he’s seen those increasing valuations in ag properties for years. “This is a problem, and now it is coming to roost in the urban areas,” Briese said. Briese tried to put a cap on property taxes — no more than a 3% increase each year, with some exceptions.The bill failed on a vote of 29 to 8. “That 3% legislation would have been very helpful going forward in this environment,” Briese said. The majority of property tax revenues in Douglas and Sarpy counties go to school districts.Briese said the current formula incentivizes districts to take full advantage of available property tax revenues.”The more resources a school district has, the less equalization aid they can get. The fact that property values are increasing means that those districts have more resources,” Briese said, “And that lowers the amount of the state aid that they’re awarded.”Briese believes there’s a better way to fund education than relying so heavily on property tax.”We have to force the state to pick up more of the tab,” he said. Briese agreed with others that getting rid of sales tax exemptions would be a path to bring more money in at the state level and fund education.He’s calling for comprehensive tax reform, and people like Adam Gibson want to see that too.”The way I look at it is it makes it harder to own a home,” Gibson said.
In a growing Bennington neighborhood, Adam Gibson has lived with his spouse and mother-in-law for nearly seven years.
“My mother-in-law put the money down on the house, and then we found one within the budget,” Gibson said.
Then, Gibson got their updated property valuation for 2021.
“We thought, we’re not going to be able to afford this,” Gibson said.
Gibson’s valuation jumped by $101,300 this year, a 38% increase over 2020.
Under the current levy rate, that would be almost $300 more every month in property taxes.
“This was going to be our forever home, and now that’s up in the air,” Gibson said.
It’s a refrain KETV Newswatch 7 has heard from property owners time and time again this year, as new valuations get sent out.
As part of a series on property valuations in Douglas and Sarpy counties, we’ve reported that state law requires properties be valued at market rates — essentially, what they could sell for. As sale prices increase in the hot housing market, so too are valuations.
Jim Vokal, CEO of the Platte Institute said those escalating valuations mean taxing entities stand to bring in more money, without raising tax rates.
“The valuations have increased substantially. But what hasn’t happened, are the counties, the cities, the school districts, other political subdivisions actually lowering the rates to offset the valuation increases. Because what’s happening is they’re getting a windfall beyond budget expectations, and they’re spending it,” Vokal said.
According to the Douglas County Assessor, initial projections show a $3 billion jump in the county’s total valuation, or a 6% increase over last year.
In Sarpy County, the assessor said projections show a $1.2 billion jump in total valuation, or a 7% increase. Both counties, outpacing the rate of inflation.
KETV Newswatch 7 reached out to cities and school districts to see if they had plans to reduce their levies based on those increased valuations. Most said they were still assessing budgets.
According to the Tax Foundation, Nebraska has the 8th highest property tax rate in the country.
The Platte Institute said property taxes just don’t need to be such a large part of the revenue pie in the Cornhusker State.
“If you look across the country, in the states that are fundamentally doing tax modernization and doing the tax reform that we should be doing it Nebraska, they’re doing it through the elimination of these carve-outs, the elimination of sales tax exemptions,” Vokal said.
Another local group, Open Sky Policy Institute, also supports broadening the sales tax base.
While the organization does not support taxing items like groceries, it does say there are nearly 100 services taxed in other parts of the country that are not taxed here in Nebraska.
This type of reform is something state Senator Tom Briese has been pushing for in the legislature.
The Albion senator said he’s seen those increasing valuations in ag properties for years.
“This is a problem, and now it is coming to roost in the urban areas,” Briese said.
Briese tried to put a cap on property taxes — no more than a 3% increase each year, with some exceptions.
The bill failed on a vote of 29 to 8.
“That 3% legislation would have been very helpful going forward in this environment,” Briese said.
The majority of property tax revenues in Douglas and Sarpy counties go to school districts.
Briese said the current formula incentivizes districts to take full advantage of available property tax revenues.
“The more resources a school district has, the less equalization aid they can get. The fact that property values are increasing means that those districts have more resources,” Briese said, “And that lowers the amount of the state aid that they’re awarded.”
Briese believes there’s a better way to fund education than relying so heavily on property tax.
“We have to force the state to pick up more of the tab,” he said.
Briese agreed with others that getting rid of sales tax exemptions would be a path to bring more money in at the state level and fund education.
He’s calling for comprehensive tax reform, and people like Adam Gibson want to see that too.
“The way I look at it is it makes it harder to own a home,” Gibson said.